MODERN ERA:
1750 - 1914
IMPACT OF TECHNOLOGY
INDUSTRIAL REVOLUTION
• 1780s Breakthrough in productivity
– Mechanization of factory, labor
– Production of vast quantities of goods
– Decreasing costs of goods
• Preceded by other revolutions and changes in attitude
– Scientific, Commercial Enlightenment, Agricultural
– Change in mindset
• New Ideas
• Risk takers
– Massive markets for products
– Improved organizational skills
– Upsurge in technology
• Inventors apply science to life, work
• Many new inventions
– Capitalization and Finance
• Profits from trade, colonies
• Invested in Europe
– Institutional changes
• Limited government of a constitutional democracy
• Notion that government should be minimally involved in economy
FOUNDATIONS OF
INDUSTRIALIZATION
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Coal critical to the early industrialization of Britain
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Overseas colonies provided raw materials, capital
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Burned coal, which drove a piston, which turned a wheel
Widespread use by 1800 meant increased productivity, cheaper prices
Iron and steel also important industries, with continual refinement
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John Kay invented the flying shuttle, 1733
Samuel Crompton invented the spinning "mule," 1779
Edmund Cartwright invented a water-driven power loom, 1785
James Watt's steam engine, 1765
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Plantations in the Americas provided sugar and cotton
Colonies also became markets for British manufactured goods
Grain, timber, and beef shipped from United States to Britain after 1830
Profits from sugar funded banks, provided investment capital
Demand for cheap cotton spurred mechanization of cotton industry
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Shift from wood to coal in 18TH century; deforestation caused wood shortages
Abundant, accessible coal reserves in Britain
Coke (purified coal) replaced charcoal as principal fuel
Bessemer converter (1856) made cheaper, stronger steel
Transportation improved with steam engines and improved steel
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George Stephenson invented the first steam-powered locomotive, 1815
Steamships began to replace sailing ships in the mid-nineteenth century
Railroads and steamships lowered transportation costs
Created dense transportation networks
IMAGES OF INVENTION
INDUSTRIAL CAUSE & EFFECT
SPINNING
<------------------------------------->
WEAVING
(EX: Spinning
Jenny)
+
(EX: Flying
shuttle)
Machines become heavier, thus
Extra power is needed, thus
Watermills, steam engine invented, thus
Emergence of factory system, replacing cottage
industry;
Because production must be concentrated near
the power source, and machines become too
expensive to be owned by workers, thus
Profound social transformations, thus
Urban influx, crowding, unprecedented social
problems thus
Workers organize, government passes laws and
reforms, unions begin to arise
FACTORY SYSTEM
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The factory
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Gradually replaced the putting-out system
Factory system required division of labor
Each worker performed a single task
Required a high degree of coordination
Work discipline, close supervision
Working conditions often harsh
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Workers lost status
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Not skilled
Just wage earners
Harsh work discipline
Fast pace of work
Frequent accidents
Industrial protest
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Saboteurs
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Luddites in England
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Flemish workers throw wooden shoes into machines
Shoes were called sabots hence saboteur
Struck against mills and destroyed machines, 1811 and 1816
Fourteen Luddites hung in 1813, and the movement died
Weaver rebellions in Germany against power looms
SPREAD OF INDUSTRIALIZATION
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British industrial monopoly
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1750 to 1800
Forbade immigration of skilled workers
Continental System of Napoleon
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Abolished internal trade barriers in western Europe, sped up process
Dismantled guilds
Belgium, France
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Moved toward industrialization by mid-nineteenth century
Belgium was first as it most resembled England, closest ports
Germany
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Bismarck sponsored heavy industry, arms, shipping
Built railroads to move German army around, benefiting commerce
Rails required steel, coal
Eventually developed chemicals, electrical industries
The United States
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Slow to start: few laborers, little capital
Cotton and Textiles began revolution
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Civil War led to explosion of steel, iron, armaments, clothing, food production
Rail networks developed in 1860s
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British craftsmen started cotton textile industry in New England, 1820s
Southern cotton was going to England, diverted to New England factories
New England most resembled Old England conditions
Integrated various regions of United States
Facilitated export markets, development of ports
Developed electrical, transportation industries
MAPPING THE REVOLUTION
INDUSTRIAL CAPITALISM
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Mass production
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Provided cheaper goods for all classes of society
Eli Whitney
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Henry Ford
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Mass production of interchangeable parts for firearms
Cotton Gin made cotton harvesting, production cheaper
Introduced assembly line
Applied to automobile production
Industrialization
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Expensive
Required large capital investment
Structural Changes of Industry
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Large-scale corporations with investors
New laws protected investors from liability
Monopolies, trusts, and cartels
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Competitive associations
Vertical organization (Monopoly)
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Horizontal organization (Trusts or cartel)
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One company controls all aspects of production within a single industry
One company dominates whole market
Oil: Drilling, processing, refining, by-products
Rockefeller's Standard Oil Co. (Exxon)
Owns all industries from manufacturing to marketing of a common product
Group of companies work together to control market, all aspects of products
IG Farben: world's largest chemical company
Most countries distrustful of monopolies although cartels tolerated
TRANS-SIBERIAN RAILROAD
Cities, industry grew
up along railroad; mines
farms, opened in area
INTERNATIONAL DIVISION
OF LABOR
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Industrialization increased demand for raw materials
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Nonindustrialized societies became suppliers of raw materials
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Cotton from India, Egypt
Rubber from Brazil, Malaya, Congo
Fueled demand for colonies
Economic development
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Europeans, Americans exported capital
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Better in lands settled by ethnic Europeans
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High wages encouraged labor-saving technologies
Strong European immigrant pool with some education
Countries Benefiting
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Capital went to nations with industrialization
Heavy industry, oil, mineral extraction, grains, railroads
Canada, South Africa, Australia, New Zealand
Argentina, Mexico, Brazil, Chile, United States
Russia, Japan
Economic dependency more common in other countries
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Sub-Saharan Africa, south Asia, and southeast Asia
Latin America had some industry but largely dependent
Infrastructure for movement of goods out of country
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Colonies generally export raw materials but little industry built
Railroads and export infrastructure (ports) built in colonies
Characteristics
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Foreign investors owned and controlled plantations and production
Free-trade policy favored foreign products over domestic
World divided into producers and consumers
ECONOMIC EXPANSION
IN U.S.A. & CANADA
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British capital
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Crucial for early development of U.S., Canadian industries
Foreign capital supported textile, iron and steel, railroads
40% of all ranches, beef exports owned by British
Helped create industrial rival (USA) that surpassed UK
Railroads
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Integrated national economy by late 19th century
200,000 miles of railroad in US by 1900
Economic stimulus
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Changed American landscape by opening west, closing it off; set time zones
Dramatic economic growth between 1870 and 1900
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New inventions and technologies
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Thomas Edison was symbolic of the Age
Electric lights, telephones, and so on
Labor conflicts over wages and working conditions
Big business won disputes as they controlled courts, government
The Canadian National Policy: plan to develop national economy
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75 percent of steel went to railroads
Supported other industries especially retail, transport along lines
Encouraged immigrant labor, farmers to settle along tracks, in West
Wanted to attract migrants and British capital but to protect Canadian industries
Construction of Canadian Pacific Railroad opened the west to settlement
Boom in agricultural and industrial production late 19th, early 20th centuries
Heavy U.S. investment in Canada
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US and Americans owned 30 percent of Canadian industry by 1918
Much cooperation and interdependence especially along Great Lakes
LATIN AMERICAN DEPENDENCE
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Colonial legacy
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Prevented industrialization
Spain, Portugal never encouraged industries
Limited success at industrialization
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1820 – 1850: Economic Stagnation
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Wars of independence had disrupted economy
Most wealth tied to land, agriculture
Export of primary, unfinished goods especially guano, coffee, hides
Too many unsolved social problems retarded industrialization
Economic growth part of 2nd Industrial Revolution
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Change grew out of liberalizing effects, reforms in late century
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Entrepreneurs, intellectuals, landowners brought in foreign investments
Facilitated by new technologies (railroads, steamships)
Great Boom driven by exports
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Demand for rubber, copper, tin, silver, beef, bananas, oil, coffee, cocoa
Capital intensive development of primary product exports
Trade increased by almost 50% from 1870 – 1880
British initially preeminent; Germany and US increasingly rivals for area
Mexico, Brazil, Argentina
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Society, infrastructure transformed by this Great Boom
But wealth often in hands of foreigners, upper elite
Growth was often at the expense of local interests, poor, minorities
Liberal idealism often sold out to wealth of elite, profit
JAPAN & THE INDUSTRIAL
REVOLUTION
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Meiji Restoration
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US industry, technology amazed, scared Japanese
Warships, weapons showed Japanese vulnerability
Industrialization in Japan
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Promoted by government
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Hired foreign experts to build modern industries
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First models built by westerners, often abroad
Next models built by Japanese in Japan
Borrowed heavily in knowledge from Great Britain
Created new industries
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Emphasized heavy industry: iron, steel, power
Light industry: clothing followed
Opened technical institutes and universities
Government-owned businesses privatized (zaibatsu)
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Many monetary incentives
Way to avoid Western encroachment
Food production subsidized by government
Old samurai families frequently bought these industries
Came to dominate transportation, weaponry, electronics
Industrialization fueled trade, imperialism
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Japan had no raw materials, needed to trade
Influenced Japanese desire for colonies, empire
Japan was the most industrialized land in Asia by 1900
RUSSIAN INDUSTRIALIZATION
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Russia experienced the 2nd Industrial Revolution
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Financed by exportation of minerals, oil, gas, grains
Development of rail system spurred other industries, exports
Strongest development in coal, steel areas of Ukraine
Rise of industrial cities: St. Petersburg. Moscow, Poland, Ukraine
Promoted by tsarist government, French government
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France needed Russia as a military ally against Germany
Russia needed a modern economy to compete on world stage
Formula: French loans/investment, sale of Russian grain
Sergei Witte, Minister of finance, 1892-1903
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Top-down Management Style
Supported railway construction
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Remodeled the state bank
Protected infant industries with tariffs, subsidies
Secured foreign loans especially from France
Industrial discontent intensified
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Rapid growth of factories, urban working class
Industrialization fell hardest on working classes
Government reaction
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Military rationale: to move troops to border if attacked
But stimulated other industries including exports
Outlawed unions, strikes
Workers increasingly radical socialists, Marxists, Populists
Business class supported autocracy, not reform
By 1900 produced half the world's oil, significant iron, armaments
IMPERIALISM & ECONOMICS
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Industrialization fueled imperialism
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Industry needed raw materials, specialized crops
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Industry needed cheap laborers
Entrepreneurs needed markets
Colonies seemed one easy answer
Technology applied to colonial problems
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Infrastructure built up to exploit colonies
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Railroads and ports were first to be created
Bridges, roads also built
Technology used to extract minerals from mines
Science applied to farming to increase yields
Demand for raw minerals, markets produced horrible violence
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Rubber, tea from SE Asia
Gold, diamonds, copper, coffee from Africa
Cocoa, hemp from Latin America
British destroy Indian textiles to sell British goods to Indians
British, Americans, French fight Opium Wars to sell opium to Chinese
Belgian atrocities in creating the Belgian Congo
British Boer War to obtain gold, diamonds of Afrikaaners
Important Fact: Colonies never paid for public expenditures
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Expense by Western governments exceeded what was earned from colonies
Wealth, profits went to Western businessmen, companies
Only France and UK benefited from colonies but it was not economic
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In World War I: French African troops saved France at Battle of Marne
In World War I and II: British Indian Army provided England with an edge to survive
IMPACT OF INDUSTRIALIZATION
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The world gets smaller, nations come together
– Technology linked nations that were once distant
– Technology made people in one nation into a community
• US, Canada, Australia, Russia: technology made them possible
• India created by the railroads
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Rise of a true world system
– Communication
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Morse Code, telegraph
Telephone, Trans-Atlantic cable
Newspaper industry, mail systems
Photography
– Transportation
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People visit another country, across ocean in weeks
Railroads, subway, automobile
Trans-oceanic ships
Riverboats, steamboats, cargo boats
– Exchanges become almost instant
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Technology becomes part of life
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Proliferation of machines mechanizes societies
Joint work of scientists, engineers directly impacted society
Machines allow humans to change environment radically
Machines allow humans to make up for environmental shortcomings